On the afternoon of October 21, the market witnessed investors losing their calmness when the selling force is huge. Among them, overseas investors strongly sold more than 1.1 billion shares, putting pressure on VN30 stocks, causing VN-Index to "fly" nearly 40 points.
October 21 trading hours.
to 2:40 pm, more than 220 stocks hit the bottom price, and a series of industry groups all fell sharply, among which the financial securities sector fell the most, causing the VN index to "evaporate" by more than 47 points. According to many financial experts, the market is retesting the range of 1,000 – 1,030 points. This is an area that aligns with many important technical levels in the past, such as the old bottom in January 2021, the old top that has been surpassed in November 2019…so it’s very important.
Closed on the afternoon of October 21, of which there were 772 falling stocks in the city, 234 stocks fell, and only about 160 stocks rose. Therefore, VN-Index fell by more than 38 points, and tested 1,019 points; VN30 fell by more than 42 points, ending at 1,010 points; HNX-Index fell by more than 8 points and ending at 217 points
The total trading volume of the entire market was nearly 889 million shares, with a total value of more than 1,6641 billion rd; among which, the trading volume of HOSE exceeded 742 million shares, with a total value of more than 1,4616 billion rd. It is worth noting that foreign investors strongly sold 1.172 billion shares on this trading day, buying just over 800 million shares.
has the largest decline, causing the market to fall by more than 17 points, namely VIC, VHM, MSSN, HPG, CTG, MWG, GAS, BID, TCB, and GVR.
Industry Group fell sharply during the trading session on the afternoon of October 21.
Previously, in the early trading on October 21, VN-Index fell to 25.1 points, with a total trading volume of nearly 7 trillion rds.
Securities experts said that there are many reasons for the market's sharp decline in the intraday session on October 21. In particular, it is worth noting that a large amount of funds may have been withdrawn from the market. It can be seen that the trading value of the stock market is declining. Specifically, on HOSE, the average transaction volume ranged from 17.178 billion VND in the second quarter of 2022 to 13.699 billion dong in the third quarter of 2022.
However, the market margin amount increased to 160 trillion VND, an increase of 10 trillion VND compared to the previous quarter. Some information about the margin rate after the cut may not be high. In fact, it is enough for securities companies to only cut the amount of margin. Therefore, the amount of margin pressed on the market may be exacerbated by the sell-off. This means that a high margin ratio does not bode well when the market falls and the transaction value falls.
From a technical perspective, Vietnam Commercial Bank Securities (VCBS) said that the comprehensive index trend in the past five trading days was loose and liquidity fell sharply, indicating that the market's short-term risks have increased. The VN index may fluctuate more intensely in the coming trading days.
Tan Viet Securities Company (TVSI) said low liquidity remains a weakness in the market, as it is difficult for the market to exceed 1,070 points before further recovery is considered in the absence of liquidity improvement. Due to rising Vietnamese Dong interest rates, pressure on the depreciation of Vietnamese Dong against the US dollar, and pressure on many issuers to expire bonds, the current market cash flow is very narrow.
TVSI maintains that VN-Index is still in the direction of overweight, waiting for a chance to break through 1,070 points, but under the current weak cash flow , stocks that create short-term returns will rarely have enough attractiveness to choose from. When it comes to the relationship between expectations and risks.
Meanwhile, VinaCapital said it still believes in the long-term potential of Vietnam's economy. In addition, compared with earnings growth, the valuation of stock of Vietnam Bank is currently lower, with an average P/B of 1.3 times, a ROE of 19.2%, and a FY22 P/E of 9.1 times. Good control, mortgage and retail penetration rate and increased revenue. Therefore, investors should increase their holdings and wait and buy selectively.
